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Journey Medical Corp (DERM)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $15.009M, a modest beat vs S&P Global consensus ($14.804M*) driven by Emrosi’s first full quarter ($2.8M) and offset by Accutane’s $2.3M YoY decline; EPS was $(0.16), missing consensus ($(0.105)*) as SG&A rose with launch investment .
  • Gross margin expanded to 67% (from 64% in Q1 and 61% in Q2 2024) on favorable mix as Emrosi is a low-cost product, establishing a higher baseline margin trajectory .
  • Management withheld formal financial guidance, reiterating the goal to achieve sustainable positive EBITDA later in 2025; payer coverage for Emrosi accelerated to ~65% of commercial lives by July vs 30% in Q1, a key ramp driver .
  • Call highlights: early Emrosi adoption (10% NRx share among targeted derm prescribers in June), strong refill trends, and QBREXZA revenue of $6.9M in Q2; management cautioned against simple ASP per script math given coupons and reimbursement lags .
  • Visibility catalysts include Russell 2000/3000 index inclusion in June and the Nasdaq closing bell event, supporting investor awareness amid the Emrosi launch ramp .

What Went Well and What Went Wrong

What Went Well

  • Emrosi delivered $2.8M net sales in its first full quarter; prescriptions set new highs weekly/monthly, achieving >10% share of new prescriptions among targeted dermatology writers by June .
  • Payer coverage rapidly expanded from ~30% in May to ~65% in July, enabling greater conversion of prescription demand into revenue over coming quarters .
  • Gross margin improved to 67%, with CFO noting Emrosi’s low COGS and mix benefits create a reasonable baseline and room for further improvement as Emrosi becomes a larger percentage of sales .

Management quotes:

  • “We have now seen over 1,800 unique prescribers…a testament to the effectiveness of our commercial team and the unmet need Emrosi is addressing.”
  • “Product mix is really the driver of the gross margin…as Emrosi becomes a larger percent…we expect the margins to improve.”
  • “We believe Journey Medical is well-positioned for continued growth and operating leverage in the second half of 2025 and beyond.”

What Went Wrong

  • Accutane revenue declined $2.3M due to aggressive generic pricing (Mayne, Zydus), pressuring legacy portfolio contributions .
  • EPS missed consensus (loss $(0.16) vs $(0.105)*), reflecting higher SG&A (+$1.6M YoY to $11.9M) tied to Emrosi commercialization and increased interest expense .
  • No formal FY25 guidance provided; management intends to wait “a few more quarters,” limiting near-term visibility despite launch momentum .

Financial Results

Multi-period comparatives

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$14.855 $13.139 $15.009
Gross Margin %61% 64% 67%
Net Loss per Share ($)$(0.17) $(0.18) $(0.16)
Adjusted EBITDA ($USD Millions)$0.309 $(0.897) $(0.476)

Actual vs S&P Global consensus

MetricQ2 2024Q1 2025Q2 2025
Revenue Actual ($MM)$14.855 $13.139 $15.009
Revenue Consensus Mean ($MM)*$13.880*$12.055*$14.804*
EPS Actual ($)$(0.17) $(0.18) $(0.16)
Primary EPS Consensus Mean ($)*$(0.143)*$(0.238)*$(0.105)*

Values with * retrieved from S&P Global.

Estimate contextQ2 2024Q1 2025Q2 2025
Revenue – # of Estimates*3*4*4*
EPS – # of Estimates*3*4*4*

Values with * retrieved from S&P Global.

Product contribution (Q2 2025)

ProductQ2 2025 Revenue ($MM)Notes
Emrosi$2.8 First full quarter on market; strong early adoption
QBREXZA$6.9 CFO disclosure during Q&A
Accutane(YoY Δ) $(2.3) YoY decline from generic pricing pressure

KPIs and balance sheet indicators

KPIQ4 2024Q1 2025Q2 2025
Payer Coverage – Emrosi (% of commercial lives)~20% ~30% ~65%
Emrosi Unique Prescribers (#)n/a~660 >1,800
Emrosi TRx (cumulative through July)n/an/a>12,800
Cash & Equivalents ($MM)$20.305 $21.070 $20.293

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal FY25 financial guidanceFY 2025Not provided; planned later in year Not provided; “wait a few more quarters” Maintained “no formal guidance”
EBITDA trajectoryFY 2025Drive to sustainable positive EBITDA and profitability Sustainably EBITDA positive later this year Reiterated
Payer coverage target2025Peak coverage expected 12–18 months post-launch (no % disclosed) Target not disclosed; continuing quantity and quality coverage build Maintained non-quantified outlook

Earnings Call Themes & Trends

TopicQ4 2024 (Mar)Q1 2025 (May)Q2 2025 (Aug)Trend
Emrosi launchPre-launch distribution; FDA approval; AAD conference prep Launch April 7; ~$2.0M initial revenue; ~660 prescribers $2.8M net sales; >10% NRx share among target writers Accelerating adoption
Payer coverage~20% commercial; 4% Medicare ~30% commercial; GPO contracting ~65% commercial lives covered Strong upward trajectory
Gross marginFY commentary on cost savings/royalties 64% 67%; CFO sees baseline improvement from mix and Emrosi Improving
QBREXZAStable; competition emerging +15% Rx growth Mar/Apr YoY $6.9M revenue disclosed Solid performance
AccutaneStabilizing after competitor entry ~10% sequential growth vs Q4; YoY volume down $(2.3)M YoY revenue decline Pressured by generics
Regulatory/dataJAMA publication, label, algorithms planned JAMA published; NRS algorithms updated SDPA data on body-weight independence; TV segment Supportive evidence base

Management Commentary

  • “We expect to build on this momentum…Ambrosi will generate high contribution margins and provide significant leverage toward our overall profitability and growth.” — CEO Claude Maraoui .
  • “We believe it represents a reasonable baseline going forward…as Emrosi becomes a larger percent…we expect the margins to improve.” — CFO Joseph Benesch on gross margins .
  • “Delivering cost-effective coverage…our strong progress with payers…ensure that patients receiving a prescription for Emrosi are able to benefit.” — CEO on payer adoption .
  • “We believe Journey Medical is well-positioned for continued growth and operating leverage in the second half of 2025 and beyond.” — CEO on outlook .

Q&A Highlights

  • Coverage trajectory: Management at ~65% commercial lives; target not disclosed; dual focus on quantity (access) and quality (formulary implementation) to convert demand to revenue .
  • Gross margin: CFO emphasized product mix and Emrosi’s low cost underpin margin improvement; expects continued benefits as mix shifts .
  • ASP per script: CEO cautioned against simple revenue/TRx math due to coupons and reimbursement timing; no ASP guidance provided .
  • Seasonality: CEO expects limited impact near term given early launch dynamics; potential tailwind exiting summer as demand builds .
  • QBREXZA performance: CFO disclosed ~$6.9M Q2 revenue, and earlier noted ongoing Rx growth despite competition .
  • Stocking/managed care conversion: Early Q1 channel stocking transitioned to pull-through; rebate and coverage dynamics to evolve as more plans implement formulary access .

Estimates Context

  • Revenue beat: Q2 2025 actual $15.009M vs consensus $14.804M*; Q1 2025 actual $13.139M vs $12.055M*; Q2 2024 actual $14.855M vs $13.880M* . Values with * retrieved from S&P Global.
  • EPS miss: Q2 2025 actual $(0.16) vs consensus $(0.105); Q1 2025 actual $(0.18) vs $(0.238); Q2 2024 actual $(0.17) vs $(0.143)*. Values with * retrieved from S&P Global .
  • Consensus coverage: 4 estimates for Q2/Q1 2025; 3 for Q2 2024 on both revenue and EPS* (S&P Global). Values with * retrieved from S&P Global.

Where estimates may adjust:

  • Upward revenue revisions likely as coverage and prescriber base scale; margin estimates may lift with mix (Emrosi’s low COGS) .
  • EPS path depends on SG&A intensity and interest expense; operating leverage should improve as Emrosi grows and coverage quality (formulary implementation) increases .

Key Takeaways for Investors

  • Emrosi’s first full quarter contributed $2.8M; >10% NRx share among target writers; >1,800 unique prescribers—evidence of strong initial adoption and launch execution .
  • Revenue beat vs consensus in Q2; EPS miss reflects launch SG&A and interest costs—watch margin trajectory and SG&A discipline as coverage quality ramps . Values with * retrieved from S&P Global.
  • Gross margin at 67% sets a higher baseline; CFO sees further mix-driven improvement as Emrosi scales—positive for medium-term profitability .
  • Payer coverage rose to ~65% of commercial lives by July; ongoing formulary implementation is key to converting demand to net revenue—near-term trading catalyst as “quality” coverage improves .
  • Legacy Accutane remains a headwind ($(2.3)M YoY decline); QBREXZA solid at $6.9M—portfolio mix shifts toward growth brands reduce volatility .
  • No formal guidance; management reiterates drive to positive EBITDA in 2025—expect guidance later after more quarters of launch data .
  • Visibility catalysts (Russell inclusion, Nasdaq bell) plus accumulating clinical/real-world data (JAMA, SDPA, TV segment) support broader awareness and physician adoption .

Appendix: Additional Data Tables

Income statement detail (company-reported)

Line item ($USD Thousands)Q2 2024Q2 2025
Product revenue, net$14,855 $15,009
COGS (excl. amortization)$5,727 $4,939
Amortization of intangibles$814 $1,064
R&D$913 $0
SG&A$10,328 $11,882
Loss from operations$(2,927) $(2,876)
Interest expense$563 $937
Net loss$(3,361) $(3,796)
Basic/diluted EPS ($)$(0.17) $(0.16)
Weighted avg shares (basic/diluted)19,993,858 23,290,806

Non-GAAP Adjusted EBITDA reconciliation (company-reported)

Item ($USD Thousands)Q2 2024Q2 2025
GAAP Net Loss$(3,361) $(3,796)
Interest$402 $799
Taxes$0 $60
Amortization of intangibles$814 $1,064
EBITDA$(2,145) $(1,873)
Share-based comp$1,674 $1,336
Short-term R&D$742 $0
FX losses$32 $61
Severance$6 $0
Adjusted EBITDA$309 $(476)

Notes: Adjusted EBITDA is a non-GAAP measure; see company reconciliation and definitions .

Annual consensus context (S&P Global)

MetricFY 2024FY 2025
Revenue Consensus Mean ($MM)*$56.724*$65.127*
Revenue Actual ($MM)$56.134
Primary EPS Consensus Mean ($)*$(1.16)*$(0.468)*
Target Price Consensus Mean ($)*$13.5*$13.5*
Target Price – # of Estimates*4*4*

Values with * retrieved from S&P Global.